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T h r e e W a y s t o M a n a g e Yo u r R i s k

N o v e m b e r 8 , 2 0 1 7

Great trading value Get online U.S. equity trades for just $4.95†, plus 65¢ per options contract.

Low margin rates Trade on margin for as low as 4.25%§ — one of the most competitive margin rates in the industry.

Industry-leading price improvement Our unique price improvement capabilities can improve your quoted price when you buy and sell.

†$4.95 commission applies to online U.S. equity trades in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Certain accounts may require a minimum opening balance of $2,500. Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). Other conditions may apply. See Fidelity.com/commissions for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody SolutionsSM are subject to different commission schedules.

There is an Options Regulatory Fee from $0.04 to $0.06 per contract, which applies to both option buy and sell transactions. The fee is subject to change. §4.25% rate available for debit balances over $1,000,000. Fidelity's current Base Margin Rate, effective since 6/16/2017, is 7.325%. Price improvement details provided for certain domestic stock and single-leg option orders entered during market hours after the primary opening, provided there is a National Best Bid and Offer (NBBO) at the time the order is placed.

Price improvement details are provided for informational purposes only and are not used for regulatory reporting purposes. See Fidelity.com for more details. 792712.2.0

COMMITMENT TO EXECUTION QUALITY Your trade execution is a top priority

SEE WHY YOUR NEXT TRADE SHOULD BE AT FIDELITY. • Only Fidelity shows what you save on a trade because of

price improvement

• Fidelity works hard to get you a better price for your equity, ETF, and options orders—every time you buy or sell

• Only firm to share order-level price improvement right on your Order Status page

• Continual monitoring of executions to ensure our high standards are met

1Based on data from HIS Markit for SEC Rule 605 eligible orders executed at Fidelity from July1, 2016, to June 30, 2017. The comparison is based on an analysis of price statistics that include market orders and marketable limit orders of 100-1,999 shares. Price improvement examples are based on averages, and any price improvement amounts related to your trades will depend on the particulars of your specific trade. Fidelity’s average retail order size for SEC Rule 605 eligible orders (100-9,999 shares) during this time period was 1,074 shares. Price improvement details are provided for domestic stock and single-leg option orders entered during market hours after the primary opening, provided there is a National Best Bid and Offer (NBBO) at the time the order is placed. Price improvement details are provided for informational purposes only and are not used for regulatory reporting purposes. NBBO price is determined with the best single-leg prices on a single market from any of the available option exchanges at the time the order is executed or within 30 seconds of the order being received by the CBOE’s order routing system. 731670.3.0

FIDELITY BROKERAGE INDUSTRY BEST CAPABILITIES In 2016 and 2017, Barron's, Investor's Business Daily, and Kiplinger’s rated us #1 online broker.

CONSISTENTLY RECOGNIZED FOR INDUSTRY BEST: • Research and Research Tools • Reliability and Trade Execution • Portfolio Analysis

1 Barron's, March 20, 2017 and March 19, 2016 Online Broker Surveys. 2017: Fidelity was evaluated against 15 others and earned the top overall score of 35.6 out of a possible 40. The firm was also named best online broker for Long-Term Investing (shared with 2 others), Best for Novices (shared with 1 other), and Best for Investor Education (shared with 2 others). Fidelity was also ranked 1st in the following categories: Trading Experience & Technology (shared with 2 others), Mobile (shared with 1 other), Research Amenities, and Portfolio Analysis and Reports (shared with 2 others). 2016: Fidelity was evaluated against 15 others and earned the top overall score of 34.9 out of a possible 40.0. Fidelity was also named Best Online Broker for Long-Term Investing (shared with one other), Best for Novices (shared with one other), and Best for In-Person Service (shared with four others), and was ranked first in the following categories: trading technology; range of offerings (tied with one other firm); and customer service, education, and security. Overall ranking for both years based on unweighted ratings in the following categories: trading experience & technology; usability; mobile; range of offerings; research amenities; portfolio analysis and reports; customer service, education, and security; and costs.

2 Investor's Business Daily® (IBD), January 2015, 2016 and 2017: Best Online Brokers Special Report. January 2015: Fidelity ranked in the top five in 9 out of 11 categories. Fidelity was named first in Research Tools, Investment Research, Portfolio Analysis and Reports, and Educational Resources. January 2016: Fidelity ranked in the top five in 10 out of 12 categories. Fidelity was named first in Trade Reliability, Research Tools, Investment Research, Portfolio Analysis and Reports, and Educational Resources. January 2017: Fidelity ranked in the top two in all 13 categories. Fidelity was named first in Research Tools, Portfolio Analysis and Reports, Investment Research, Educational Resources, and Planning Tools. Results in 2017 were based on having the highest Customer Experience Index within the categories composing the survey, as scored by more than 4,752 respondents in the survey conducted by Investor’s Business Daily’s polling partner, TechnoMetrica Market Intelligence. © Investor's Business Daily, Inc. All rights reserved.

3 Kiplinger's, August 2016 and August 2017 Online Broker Survey. 2016: Fidelity was ranked No. 1 overall out of 7 online brokers. Results based on ratings in the following categories: Commissions and Fees, Breadth of Investment Choices, Tools, Research, Ease of Use, Mobile, and Advisory. 2017: Fidelity was ranked No. 1 overall (tied with Merrill Edge) out of 7 online brokers. Results based on ratings in the following categories: Total Commissions Score, Breadth of Investment Choices, Tools, Research, Ease of Use, Mobile Access, and Advisory Services. 762458.3.0

John Gagliardi

Vice President, Fidelity Investments

Russell Rhoads, CFA

Director of Global

Derivatives, CBOE

Sam Stovall Chief

Investment Strategist,

CFRA Research

Frank Teixeira, CMT, CFA

Chief Technical Analyst,

Wellington Management

Speaker panel:

RISK MANAGEMENT STRATEGIES TO HELP YOU IN TODAY'S VOLATILE MARKETS

GOALS OF TODAY’S PRESENTATION

In today’s presentation, we will learn how to easily implement risk management strategies. What we will cover:

• Diversification and a balanced portfolio

• Position Management: Stops/Limits/Profit & Loss Targets and more

• Options: Hedging downside, by purchasing a lock-in price or selling your upside

RISK MANAGEMENT

Diversification and a balanced portfolio

• Indexing: .SPX and others

Secular Bull Markets, 1982-2000 & 2013-???

Source: Chart built in Active Trader Pro® by John Gagliardi, Fidelity Investments, October 2017

S&P 500 Secular Bulls, on percentage basis

Source: Chart built in Active Trader Pro® by John Gagliardi, Fidelity Investments, October 2017

10 Source: CFRA, S&P DJ Indices. Past performance is no guarantee of future results. Data: 12/31/1997- 10/31/2017.

The Chicken Little Portfolio

The Benefit of a Hypothetical 60/40 Diversified Portfolio was Improved by Substituting Equity Benchmarks With Their Low Volatility Subsets

$9,000

$14,000

$19,000

$24,000

$29,000

$34,000

$39,000

$44,000

30% S&P 500 / 10% S&P MC 400 / 5% S&P SC 600 / 10% BMI-Ex U.S. / 5% BMI-EM / 40% BBBI

30% 500 LV / 10% 400 LV / 5% 600 LV / 10% Int'l Dev. LV / 5% Emerging LV / 40% BBBI

$47,675

$41,352

1997-17 Standard Freq. of WorstCAGR Deviation Annual Rise Month7.4% 10.3 79% -11.6%8.2% 7.3 89% -9.2%

11

The SPDR S&P 500 ETF (SPY) an efficient method of gaining exposure to the overall stock market Average daily volume for the SPY ETF is over 60 million shares and over 2 million SPY options change hands each day There are also multiple SPY expirations available for trading as of September 29, 2017 below

Data Source: LiveVolPro

Options on the Market

29-Sep-17 25-Oct-17 29-Dec-17 20-Jul-18 4-Oct-17 27-Oct-17 19-Jan-18 21-Sep-18 6-Oct-17 1-Nov-17 16-Feb-18 21-Dec-18 11-Oct-17 3-Nov-17 16-Mar-18 18-Jan-19 13-Oct-17 10-Nov-17 29-Mar-18 15-Mar-19 18-Oct-17 17-Nov-17 15-Jun-18 21-Jun-19 20-Oct-17 15-Dec-17 29-Jun-18 20-Dec-19

12

Past example, for educational purposes only Tuesday September 20th – day before fed announcement Bullish on the reaction (because when Janet speaks the market rallies)

SPY at 213.95

Buy 1 SPY Sep 21st 210.00 Call at 4.15

Time Value of 0.20 (one day of time)

Options on the Market

13

Long 1 SPY Sep 21st 210.00 Call at 4.15

Options on the Market

-6

-4

-2

0

2

4

6

8

210.00 212.50 215.00 217.50

SPY @ 213.95

9/21 Close 216.30

Net Profit = 6.30 – 4.15 = 2.15

Image is for illustrative purposes only

RISK MANAGEMENT

Position Management:

• Stops, Stop Limits

• Trailing Stops

• Profit & Loss Targets

• Trade Armor

Trailing stop orders may have increased risks due to their reliance on trigger pricing, which may be compounded in periods of market volatility, as well as market data and other internal and external system factors. Trailing stop orders are held on a separate, internal order file, place on a "not held" basis and only monitored between 9:30 AM and 4:00 PM Eastern.

Stop loss orders do not guarantee the execution price you will receive and have additional risks that may be compounded in periods of market volatility. Stop loss orders could be triggered by price swings and could result in an execution well below your trigger price.

Signs of leadership change…Energy sector new PRICE lows…

…but relative strength comparison moving higher…starting to get interesting Image is for illustrative purposes only

Trending and outperforming…

…stay long… Image is for illustrative purposes only

…until price trend is formally broken…

…avoiding bad charts is how we manage risk

Image is for illustrative purposes only

Not all uptrends are equal…this one is trending, but not outperforming.

If a chart this good is underperforming, what must the rest of the market look like? Image is for illustrative purposes only

The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted. Quarter-End returns include all applicable recurring and non-recurring fees (including short-term trading or redemption fees) and charges, if any. Average annual total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated. Life of fund figures are reported as of the commencement date to the period indicated. Since ETFs are bought and sold at prices set by the market - which can result in a premium or discount to NAV- the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully

XLE ENERGY SELECT SECTOR SPDR FUND

21

S&P 500 Declines & Recoveries

Source: CFRA, S&P Dow Jones Indices. Past performance is no guarantee of future results. Data: 12/31/1945-10/31/2017.

It’s Usually Been Better to Buy Than Bail

Months to

Type (% Decline) Count % Change Months Recovery

Pullbacks (5.0%-9.9%) 56 (7) 1 2

Corrections (10.0%-19.9%) 21 (14) 5 4

All Bears (20%+) 12 (33) 14 25

>"Garden Variety" (20%-40%) 9 (26) 11 14

>"Mega-Meltdown" (40%+) 3 (51) 23 58

Average Peak-to-Trough Declines

22

One of the most common uses of equity options is buying a put to help protect against a downside move On March 18th IBM was trading at 132.50 A holder of 100 shares of IBM is concerned about weakness in shares over the next four weeks after the trade was entered

Protective Put Position Long 100 IBM at 132.50

Long 1 IBM Apr 130 Put at 3.00

Stops vs. Puts for Protection

For illustrative purposes only.

23

Protective Put – Payoff at Expiration

Stops vs. Puts for Protection

24

Protective Put Payoff at Expiration

Stops vs. Puts for Protection

-15

-10

-5

0

5

10

15

125.00 130.00 135.00 140.00

Long IBM at 132.50

Protective Put

Image is for illustrative purposes only

RISK MANAGEMENT

Options:

• Buying Puts = Purchasing a lock-in price

• Selling Covered Calls = Hedging downside by selling your upside

26

Dividend Aristocrats^ vs. S&P 500

Source: CFRA, S&P DJ Indices. Past performance is no guarantee of future results. Data 5/31/2005-10/31/2017. ^A Dividend Aristocrat company must have had a managed dividend policy that has typically increased dividends for at least 25 years

Relative Price Return of the S&P Dividend Aristocrat vs. S&P 500 and Stock Market Corrections (Declines of 10%-19.9%)

0.30

0.35

0.40

0.45

0.50

0.55

Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17

S&P 500 Dividend Aristocrats Index

Divided by the S&P 500 Index

<---- Declines of 10%+ ---->

27 Source: CFRA, S&P DJ Indices. Past performance is no guarantee of future results. ^A Dividend Aristocrat company must have had a managed dividend policy that has typically increased dividends for at least 25 years. Image is for illustrative purposes only

Income Investors, Think Like a Landlord

Price and Rolling 12-Month Dividend by Exxon (XOM 80***), a Dividend Aristocrat^

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$30

$40

$50

$60

$70

$80

$90

$100

$110Fe

b-90

Jun-

91

Oct-9

2

Feb-

94

Jun-

95

Oct-9

6

Feb-

98

Jun-

99

Oct-0

0

Feb-

02

Jun-

03

Oct-0

4

Feb-

06

Jun-

07

Oct-0

8

Feb-

10

Jun-

11

Oct-1

2

Feb-

14

Jun-

15

Oct-1

6

12-Month Income Stream

28 Source: CFRA, S&P DJ Indices. Past performance is no guarantee of future results. ^A Dividend Aristocrat company must have had a managed dividend policy that has typically increased dividends for at least 25 years. Image is for illustrative purposes only

Income Investors, Think Like a Landlord

Price and Rolling 12-Month Dividend by Exxon (XOM 83***), a Dividend Aristocrat^

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$30

$40

$50

$60

$70

$80

$90

$100

$110Fe

b-90

Jun-

91

Oct-9

2

Feb-

94

Jun-

95

Oct-9

6

Feb-

98

Jun-

99

Oct-0

0

Feb-

02

Jun-

03

Oct-0

4

Feb-

06

Jun-

07

Oct-0

8

Feb-

10

Jun-

11

Oct-1

2

Feb-

14

Jun-

15

Oct-1

6

XOM price (Left Scale) 12-Month Income Stream (Right Scale)

29

Example of 60 Trading Days of ATM Time Decay

Covered Call

0.00

0.50

1.00

1.50

2.00

2.50

3.00

60 55 50 45 40 35 30 25 20 15 10 5 0

For illustrative purposes only.

30

DR Horton – DHI Daily Price Action

Image is for illustrative purposes only Data Source: Bloomberg , as of 9/28/17

Covered Call

34

35

36

37

38

39

40

7/26/17 8/8/17 8/21/17 9/1/17 9/15/17 9/28/17

31

DHI may be considered a little extended rising over 5% in the last four days As a holder of 100 shares of DHI we either believe the move is overdone or would be happy selling just over current levels Based on this outlook we decide to explore selling a call option against our shares

Covered Call

For illustrative purposes only

32

DHI @ 39.00

Sell 1 DHI Oct 27th 40.00 Call at 0.45

Covered Call

Expiration Date Trading Days 39.00 Call 40.00 Call 6-Oct 6 0.40 0.10 13-Oct 11 0.55 0.20 20-Oct 16 0.75 0.30 27-Oct 21 0.85 0.45 3-Nov 26 0.95 0.55

10-Nov 31 1.35 0.90 17-Nov 36 1.45 1.05

For illustrative purposes only

33

Long 100 DHI at 39.00 + Short 1 Oct 27th 40.00 Call at 0.45

Covered Call

-4

-2

0

2

4

6

37 38 39 40 41 42 43

For illustrative purposes only

Do you have to use options to manage a portfolio?

Holding cash in times of uncertainty may be OK.

TH

AN

K Y

OU

!

37

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your broker or from The Options Clearing Corporation at www.theocc.com. The information in this presentation is provided for general education and information purposes only. No statement within this presentation should be construed as a recommendation to buy or sell a security or to provide investment advice. Supporting documentation for any claims, comparisons, statistics or other technical data in this presentation is available by contacting CBOE at www.cboe.com/Contact. Past performance does not guarantee future results. Cboe® is a registered trademark and Cboe Options InstituteSM is a service mark of Cboe Exchange, Inc. S&P 500® and SPDR® are trademarks of Standard & Poor's Financial Services, LLC and have been licensed for use by Cboe Exchange, Inc. S&P makes no representations or recommendations concerning the advisability of investing in products that have S&P indexes as their underlying interests. All other trademarks and service marks are the property of their respective owners.

© 2017 Cboe Exchange, Inc. All rights reserved.

Disclosure

The views expressed are as of the date indicated and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author, as applicable, and not necessarily those of Fidelity Investments. The experts are not employed by Fidelity but may receive compensation from Fidelity for their services. Fidelity Investments is not affiliated with any other company noted herein and doesn’t endorse or promote any of their products or services. Please determine, based on your investment objectives, risk tolerance, and financial situation, which product or service is right for you. Options’ trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options, and call 800-544-5115 to be approved for options trading. Supporting documentation for any claims, if applicable, will be furnished upon request. Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results. Examples in this presentation do not include transaction costs (commissions, margin interest, fees) or tax implications, but they should be considered prior to entering into any transactions. The information in this presentation, including examples using actual securities and price data, is strictly for illustrative and educational purposes only and should not be construed as an endorsement or recommendation. Fidelity Brokerage Services LLC, Member NYSE, SIPC. 900 Salem Street, Smithfield, RI 02917 © 2017 FMR LLC. All rights reserved. 822379.1.0

John Gagliardi

Vice President, Fidelity Investments

Speaker panel:

LEARN HOW TO EASILY IMPLEMENT RISK MANAGEMENT STRATEGIES

Chris Clark

Director, Fidelity Investments

Brian Isabelle

Trading Strategy Desk,

Fidelity Investments